1. The AllStar Bank has the following balance sheet: ( LG 21- 2) Assets (in millions) Liabilities...

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1. The AllStar Bank has the following balance sheet: ( LG 21- 2)

Assets (in millions) Liabilities Cash $ 30 Deposits $ 90 Other assets 140 Borrowed funds 40

$170 Other liabilities 40

$170 Its largest customer decides to exercise a $15 million loan commitment. Show how the new balance sheet changes if AllStar uses ( a ) stored liquidity management or ( b ) purchased liquidity management.

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Financial Markets And Institutions

ISBN: 9780071086745

5th International Edition

Authors: Anthony Saunders, Marcia Cornett

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